Customs, Excise and Gold Tribunal - Delhi Tribunal

Karnal Milk Foods Ltd. vs Cce on 24 May, 2006

Customs, Excise and Gold Tribunal – Delhi
Karnal Milk Foods Ltd. vs Cce on 24 May, 2006
Equivalent citations: 2006 (110) ECC 543, 2006 ECR 543 Tri Delhi
Bench: N T C.N.B., M Ravindran


ORDER

C.N.B. Nair, Member (T)

1. None has appeared for the Appellant. The notice issued to the Appellant is being returned by postal authorities. Accordingly, we are proceeding to dispose of the appeal after hearing of the Learned SDR and perusing the record.

2. Appellant manufactured Dairy Whitener. It is made out of partially skimmed milk powder, sugar and other items. It sought classification of the item under Excise Tariff heading 0401.19. Revenue Authority took a view that the correct classification would be under sub-heading 0401.13. The appeal filed against that order was rejected by the Commissioner (Appeal). Now, the matter is before us. The competing headings may be read:

  Heading No.Sub heading Description                       Rate of duty
0401                            Milk and Cream, Concentrated or
                                containing added sugar or other
                                Sweetening matter.
                                In or in relation to the manufacture 
                                of which any process is ordinarily  
                                carried on with the aid of powder

401.13                          Milk powder other than powder      8%
                                specially prepared for feeding 
                                Infants. Put up in unit containers
                                And ordinarily intended for sale.

0401.19                  Others                                NIL
 

3. The finding of the Commissioner is that ISI and other standards authorities treat full cream, partly skimmed and skimmed milk powder all as falling under the category of milk powder. Commissioner also has noted that the Hon’ble Punjab and Haryana High Court has taken Judicial notice of this in its judgment in the case of Food Specialties Ltd. 1991 i.e. (51) ELT 310 (P&H).

4. SDR has placed before us the decision of this Tribunal in the case of Nestle India Ltd. , wherein the Tribunal specifically held that all verities of milk powder (skimmed; partly skimmed and full cream) fall under sub-heading 0401.13. Thus, the dispute remains decided in favour of the Revenue by a Coordinate Bench of this Tribunal.

5. Following the above decision of the Tribunal, we hold that the classification order of the Commissioner (Appeals) is correct. It is confirmed and the appeal is rejected.

(Dictated and pronounced in the open court)